Stability gives tourism, industry bright hopes<\/p>\n
By A. Junaidi<\/p>\n
BATAM, Riau (JP): Industry and tourism in Batam appear to be
\nreviving, thanks to the return of political stability following
\nthe democratic election of President Abdurrahman Wahid in October
\nlast year.<\/p>\n
Chairman of the Batam Industrial Development Authority (BIDA)
\nIsmeth Abdullah said recently several investors had renewed their
\ncommitment to invest in Batam after the presidential election.<\/p>\n
\"Tourist arrivals are also currently increasing,\" Ismeth told
\nThe Jakarta Post.<\/p>\n
He said this year Batam's 389 companies, mostly foreign
\ninvestment firms, would contribute more than Rp 1 trillion
\n(US$142 million) in corporate and income taxes to state revenues.<\/p>\n
He said 47 new factories were expected to be built on the
\nisland in 2000, with US$ 90 million dollars from Singaporean,
\nKorean and Japanese investors.<\/p>\n
Out of 30 countries investing in Batam, Singapore is the
\nlargest, accounting for 75 percent of all investment, followed by
\nthe United States (5.6 percent) and Japan (five percent).<\/p>\n
Ismeth hoped the recent visit of President Abdurrahman, better
\nknown as Gus Dur, to Singapore would encourage more Singaporean
\nfirms and individuals to invest on the island.<\/p>\n
During his visit in November Gus Dur reportedly offered
\nSingaporean senior minister Lee Kuan Yew a job as his
\ninternational economic advisor.<\/p>\n
Gus Dur's predecessor B.J. Habibie, the pioneer behind Batam's
\ndevelopment, was believed to have a poor relationship with Lee.<\/p>\n
During a recent consultative meeting with the House of
\nRepresentatives Gus Dur announced that Batam, along with Bintan,
\nKarimun and Sabang, would be declared free trade zones.<\/p>\n
He said the new status was aimed at speeding up development in
\nthe islands and increasing job opportunities.<\/p>\n
Ismeth hailed the free trade area status, saying it would
\nattract more investors to the 145-square-kilometer island
\nsituated just 20 kilometers south of Singapore.<\/p>\n
Batam's economy grew by two percent last year, while other
\nparts of the country recorded minus growth. This year Batam's
\neconomy is predicted to grow by between four and five percent.<\/p>\n
\"Batam was the only province to enjoy economic growth during
\nthe monetary crisis,\" Ismeth said.<\/p>\n
Confidence<\/p>\n
A president of a local car repair firm, Sujak Widodo, also
\nexpressed confidence that Batam would continue to blossom in the
\nfutures.<\/p>\n
Sujak said that, in cooperation with a local investor, he
\nplanned to build a car factory in Batam in three years time with
\nan initial investment of Rp 10 billion.<\/p>\n
Local property businessman M. Rindo Purba said the property
\nmarket in Batam was on the right track, thanks to the survival of
\nindustry on the island.<\/p>\n
\"The economic crisis affected us a little bit,\" Rindo, an
\nexecutive of the Indonesian Real Estate Developers Association
\n(REI) in Batam, said without elaborating.<\/p>\n
The tourist sector in Batam has also regained its feet since
\nthe presidential election.<\/p>\n
Foreign tourist arrivals dropped significantly after bloody
\nethnic clashes between Bataks and Florinese broke out here last
\nJuly, leaving at least 13 people dead.<\/p>\n
From 110,000 in July, they dropped to 88,456 in August, the
\nlowest number this year. The figure then increased to 98,456 in
\nSeptember, 110,900 in October and 123,000 in November.<\/p>\n
Sales manager at Batam's Turi Beach Resort Ida Bagus Oka
\nNegara said many tourists canceled their visits and asked for
\nrefunds on hearing reports of fighting on the island.<\/p>\n
\"Now they have returned. Almost every weekend hotels here are
\nfully booked,\" Bagus said.<\/p>\n
BIDA's deputy director for tourism Prieddy Soegondho P. said
\nBatam would develop and promote cultural and ecotourism to
\nlengthen tourist stays.<\/p>\n
\"Now tourists only stay here an average of two days,\" Prieddy
\nsaid, adding that 70 percent of the tourists are Singaporean and
\neight percent are Malaysian.<\/p>\n
He predicted this year the number of tourists would reach 1.2
\nmillion, making it the country's second most popular tourist
\ndestination after Bali.<\/p>",
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